Five key strategies that every pet business can learn from Chewy
It’s no secret that the USA represents one of the biggest players in the world regarding the pet market industry.
Companies like PetSmart, Petco, and Amazon’s Wag continue to scale and accommodate pet parents wants and needs. One top dog comes to mind far more than the rest; Chewy.
It started like many small entrepreneurial journeys: two friends came together to create something they were passionate about and saw as a business opportunity.
There’s much to unpack, from a small online venture to a soon-to-be international company. However, what we find truly compelling is the company’s not-so-secret sauce: its customer journey experience.
How a dog influenced the creation of the company
Chewy, Inc. is a Florida-based e-commerce company specializing in pet products. It ranges from food, toys, accessories, and anything else one might need for their non-human family member. But it wasn’t always like that.
In 2011, Ryan Cohen and Michael Day were on the verge of launching their online jewelry business when Cohen had a more aligned idea with his own reality.
Cohen recognized that something from that experience could be explored at the pet store shopping for his poodle Tylee.
Years later, In a 2019 Business Insider interview, he recalled that he grew up with pets who were always there for him. For that reason, he “was uniquely qualified to really understand that emotional bond” and he knew “how strong it was and how fanatical pet owners are.”
He also felt that if he could emulate the personal and close experience of a neighborhood’s pet store, pack it with value and bring it online, he could create a great business.
So business jewelry put aside, Cohen and Day created Mr. Chewy within six months, later renamed Chewy.com.
Overcoming the first years of uncertainty at Chewy
The first few years were not a walk in the park. Poor delivery times, defective scans, and low Wi-Fi connections were some of the things that harmed Chewy’s initial reputation and growth.
However, the founders managed to overcome these hardships and grew their business to a point where private investment was the next step to take. But that wasn’t easy either.
Cohen and Day had a hard time due to Amazon’s massive presence in the online market. Cohen even recalled that they “literally got turned down from over 100 people because of this one company.”
However, he believed that just like other retail-niche companies were thriving, Chewy could also become the go-to brand for the pet industry. Their biggest selling point? Around-the-clock experts who could help pet parents navigate their entire line of products.
In the previously mentioned Business Insider interview, Cohen referred that this differentiator factor was really important since his dog was like family, and he had a lot of questions. And since pets can’t talk, pet owners (like himself) need experts.
They ended up getting the funding, and by 2016, the company had made 901 million in revenue, employed 7 000 people, and owned six warehouses with plans to expand.
One year later, they launched their exclusive food brand, American Journey.
An online pet business that was the biggest acquisition at the time
The company was growing fast and showing big numbers, leading to preparation for an IPO.
But before going public, competitors were the first to jump on board and try to merge with Chewy. First, Petco and then PetSmart reached out to buy the company.
Although top dogs, they were losing market fast and feeling the sales declining. Chewy had put up a fight with their great online pet store experience, and competitors couldn’t quite compete.
In 2017, after much negotiation, BC Partners — the company that owned PetSmart since 2015 — acquired Chewy for 3.35 billion dollars. It was the biggest e-commerce business acquisition at the time.
After the sale, Chewy continued growing and showing cards. In 2019, though BC Partners still owned most of its stock, it went public with a 9 billion-dollar valuation.
A year later, while most companies struggled with the pandemic, Chewy took the opportunity to create awareness, empathy, and a great campaign that sustained growth during COVID-19.
In 2021, the company was nominated as a Fortune 500 company, and currently, its sniffing international grounds and plans to expand to Canada first.
How being customer-centric is what differentiates this company from competitors
Since founding the company (and before leaving in 2018), Cohen knew how important it was to create a convenient and effective service and a complete customer experience.
“The focus isn’t on making one-off transactions but on turning customers into lifelong clients. The idea is to ‘wow’ the customer and to provide a delightful experience where they would never dream of shopping elsewhere.”
Chewy’s customer appreciation techniques, friendly 24/7 customer service, and top-notch online presence contribute to its positive popularity and loyal customer base.
The e-commerce business sends new customers handwritten notes, snail mail to every customer during the holidays, and flowers or custom oil pet portraits on important family occasions (good and bad).
During the purchasing process, the company is also known for having proactive problem-solving techniques that quickly try to turn a mediocre experience into a great one. A 24/7 helpful and friendly team available through the customer’s preferred channel ensures a human touch to each interaction, making it easier to resonate with pet parents and establish personal connections.
Other than the sale experience, Chewy also initiated a solid online community. Via social media platforms like Instagram, they share pet-related content, encourage customers to share pet photos and stories, and actively engage with followers.
By ensuring a circular customer experience that isn’t limited to the purchase process, Chewy secures its constant top-of-mind presence.
Real-life examples that rocket Chewy’s reputation and customer interest
Even during Covid, Chewy has continuously sent over 1 000 free pet paintings that are the spitting image of their loyal non-human customers. The internet is flooded with comments, tweets, and reviews of pet parents recalling their personal experiences with Chewy.
In an interview, Danielle Schwartz told Associated Press how surprised she was by a big company sending something so personal like an oil painting of her cat.
Another customer, Anna Brose, explained on Twitter how she wanted to return an unopened bag of dog food after her dog, Gus’ passing. She said the customer sales professional was kind, gave her a full refund, and told her to donate the food to a local shelter. After that, she received flowers and a hand note signed by the person who she had spoken with.
In reply to Brose’s tweet, Shawn Lamoreaux shared that he received a hand-painted portrait of his dog after he had passed. “We were not expecting anything and were only notifying them so they knew not to send us the pills anymore, so we were shocked and super thankful to see a painting come to our doorstep a few weeks later with a handwritten card included,” he said.
When questioned by The Post about situations like Brose’s and Lamoreaux, Andrew Stein, a senior director of customer service at Chewy, explained that “Each interaction with a customer is an opportunity to delight them in a moment of joy or provide empathy in a time of grief.”
He added, “These acts of enduring companionship, which include sending handwritten holiday cards, hand-painted pet portraits, and sympathy flowers, are embedded in our culture and allow us to create deeply personal and emotional connections through all the highs and lows of the pet parent journey.”
Key strategies every pet business can take away from Chewy
Chewy is a big Fortune 500 public company with a lot of resources, financially and human-wise. And though not every pet business gets to be at that level, some takeaways can be replicated at any scale.
1. Deeply knowing the customer
Customers are the base of every business. It’s crucial to know them well, accommodate their needs and wants, and get constant feedback on services and products.
2. Ensuring value proposition is met
If you tell your customers what to expect from your business but fail to meet their expectations, you will lose that customer and potentially an entire network of them. People often comment on great and lousy shopping experiences with friends, family, and acquaintances.
3. Prioritizing problem-solving
Humans make mistakes, but as entrepreneurs, it’s hard to assume when something goes sour with our business. Yet, the best action is to focus on the solution, not the problem. A complaint from a customer is a new opportunity to make him fall in love with your business again. Customers might come for the service/services but stay for how they were treated.
4. Creating an experience
Having a big budget to commission artists for pet portraits is impressive. But it’s not a reality that every pet business can have. Truthfully, it doesn’t have to be something big and shiny. What it takes is consideration and empathy. Think about how you feel when receiving a handwritten note that speaks directly to you or when someone remembers your pet’s name and personality. Now evoke that feeling in your business.
5. Keeping it personal
Brands are intangible and bigger ones seem even further away. No one enjoys talking to a bot or feeling their message isn’t getting across. You can have the most premium pet brand, but unless it evokes emotions, you will have a business for a while. As cliche as it sounds, people connect with people. Brands need to feel human, approachable, and flawed, just like the rest of us.
Conclusion
Chewy has more than 2 000 pet brands, its own sub-brands of dog and cat food, a pet pharmacy system, and a donation program.
There are mixed reviews online. Some are amazing, and others are pretty awful. Regardless of which side of the pendulum you fall on — or even if you have any experience with them — it’s impressive how their reputation seems built on customer satisfaction, problem-solving, and an active community of like-minded people who love their pets.
More than being pro or against big corporations like Chewy, we wanted to dive deep into what made them stand out and how you can incorporate these ideas to scale your pet business.
Not sure how to attract the right customers and what marketing strategies could work best for your pet business?
Book a 1-on-1 strategy session and a brand strategy book with our friend Kati from Max Pet Marketing. Kati has been working in the pet industry since 2010 and is equipped with a lot of knowledge on branding and strategic thinking for pet brands like yours!
https://www.petbrandschool.com/courses/1-on-1-strategy-session-brand-strategy-workbook?ref=61777d
Or check her complete training on Pet Brand School for a full hands-on approach:
https://www.petbrandschool.com/courses/pet-brand-school?ref=61777d
PS: These are affiliate links, and don Gata Studio earns a small commission if you proceed with enrolment. Regardless, we wouldn’t recommend something if we didn’t believe it benefits pet businesses like yours!
